How much does a Great Clips franchise cost?
A new U.S. Great Clips salon has an estimated initial investment of $187,800 to $419,900. That is the range disclosed by Great Clips, Inc. in the Franchise Agreement table in its Franchise Disclosure Document issued March 30, 2026. The table covers a single Franchise Agreement and the first salon developed under the Three Star Program Agreement; it does not turn the separate Master Development Agreement payment into an alternative all-in salon cost.
The largest disclosed variable is Leasehold Improvements, including Labor, at $70,000 to $200,000. A Master Development Agreement requires a separate $14,000 to $46,000 at signing for development rights covering two to 10 salons and the first $6,000 Initial Franchise Fee; the Development Fee is expressly in addition to the first salon’s Item 7 investment.
Data basis. Legal franchisor: Great Clips, Inc., a Minnesota corporation with no predecessors or affiliates disclosed in Item 1. Document: 2026 Great Clips, Inc. Franchise Disclosure Document, issued March 30, 2026. Cost sections reviewed: Items 5, 6 and 7, with cost-relevant provisions in Items 8, 10, 11 and 17. Applicable paths: Franchise Agreement, Three Star Program Agreement and Master Development Agreement. Information checked July 15, 2026. The current FDD citations are plain text because a matching public FDD was not available on an official franchise-controlled domain when checked; supplemental facts link to official Great Clips U.S. franchise information and the Great Clips corporate overview.
What is included in the $187,800–$419,900 range?
The 2026 Item 7 total combines contract payments, premises work, required fixtures and inventory, launch advertising, insurance, training travel and initial operating capital. The official total should be used as disclosed rather than recreated from selected categories, because its low end uses the $20,000 single-salon Initial Franchise Fee while its high end uses the $35,000 Three Star Program Fee.
Contract and pre-opening payments
These payments arise before or around site commitment, training and opening. Timing changes for a subsequent Franchise Agreement, and the lease-related fees apply only when the stated lease circumstances occur.
| Item 7 category | Amount | When paid | Key qualification |
|---|---|---|---|
| Initial Franchise Fee | $20,000 or $35,000 | At signing; later agreements split $10,000 at signing and $10,000 at equipment order | $35,000 is the Three Star Program Fee covering three Franchise Agreements, subject to program conditions |
| Initial Advertising Contribution to the MDAF | $5,000 | At first agreement signing; later agreements at equipment order | One-time, non-refundable contribution; Three Star treatment depends on program conditions |
| Travel and Expenses While Training | $1,500–$2,500 per participant | As incurred during training | Paid to airlines, hotels and restaurants; wages and other staff expenses can also apply |
| Architecture Fees | $100–$3,800 | As incurred | Higher end assumes revisions, engineered drawings or LEED-related work |
| Rent and Security Deposits | $1,000–$10,000 | At lease signing or utility-account start | Rent is generally non-refundable; deposits depend on the contract |
| Insurance | $1,500–$3,000 | Before opening | Initial property and public-liability premium only |
| Lease Liability Fee and Lease Review Fee | $0–$4,000 | Upon lease or sublease assignment | Includes a $1,500 liability fee when Great Clips remains liable and a $2,200–$2,500 review fee |
Source: 2026 Great Clips, Inc. FDD, Items 5 and 7, pp. 9–18.
Premises, equipment, launch and working capital
These categories account for most of the total. The premises assumption is generally a 900- to 1,200-square-foot salon in a shopping center delivered in a “vanilla shell” condition, not a guaranteed local construction quote.
| Item 7 category | Amount | When paid | Cost scope |
|---|---|---|---|
| Leasehold Improvements, including Labor | $70,000–$200,000 | When construction starts | Condition of the premises, plumbing, HVAC, electrical and local code work drive variation |
| Fixtures, Signage and Furnishings, including Salon Technology Hardware | $40,000–$55,000 | When ordered | Purchased from Great Clips, designated suppliers or the landlord as applicable |
| Freight | $4,000–$7,000 | As incurred | Freight carriers, suppliers and Great Clips |
| Sales Tax on Fixtures, Signage and Furnishings | $0–$3,200 | As incurred | Varies by jurisdiction and taxable purchase |
| Opening Inventory and Supplies | $4,700–$6,400 | When ordered | Required haircare products, tools and supplies from designated sources |
| Grand Opening Advertising | $20,000–$25,000 | As incurred | First-salon plan; discounted pricing and extra opening staff are excluded |
| Additional Funds (3–6 Months) | $20,000–$60,000 | Before opening and as incurred | Payroll, taxes, professional fees, rent, recruiting, repairs, supplies and other start-up items |
| Total Estimated Initial Investment | $187,800–$419,900 | Across the opening period | Official 2026 Item 7 total for the applicable first-salon table |
Source: 2026 Great Clips, Inc. FDD, Item 7, pp. 15–18. The official Great Clips investment page publishes the same U.S. total range and a condensed category summary.
Additional Funds are already inside the Item 7 total. Adding another $20,000–$60,000 on top of $187,800–$419,900 would double-count working capital. The Additional Funds estimate covers the pre-opening period and first 3–6 months, but excludes an owner’s salary or draw and does not guarantee that no further start-up expense will arise.
Which categories create most of the investment uncertainty?
Leasehold Improvements create the widest disclosed spread, followed by Additional Funds. The Initial Franchise Fee line also spans $20,000 to $35,000, but that difference reflects the selected agreement path rather than a negotiable price within one contract.
Source: 2026 Great Clips, Inc. FDD, Item 7, pp. 15–18. No midpoint or “typical” value has been calculated.
The FDD does not publish separate Item 7 totals for shopping-center, freestanding, densely populated or other Non-Traditional Locations. It says Great Clips salons are ordinarily in or near shopping centers, while a conversion of an existing freestanding building or pre-existing facility may be allowed with consent. Conversion costs are described as too individually variable to predict and may exceed the cost of a newly built facility. Buying an existing salon can also change the total.
Required sourcing is a material Great Clips cost condition
Great Clips, Inc. says required purchases from it or designated suppliers account for approximately 90%–95% of the goods and services bought when establishing a salon and approximately 80%–85% of ongoing purchases. Great Clips is currently the sole supplier for specified lobby, sales-area, station, flooring, graphics and signage items, while designated suppliers cover opening inventory and other required goods.
Source: 2026 Great Clips, Inc. FDD, Item 8, pp. 19–21.
When is the money paid?
The capital is not due as one check. The 2026 FDD ties payments to agreement signing, site and lease events, construction, equipment orders, training and the first 3–6 months of operation.
Agreement signing
For a first single Franchise Agreement, pay the $20,000 Initial Franchise Fee and $5,000 Initial Advertising Contribution to the MDAF. A Three Star Program Agreement requires $35,000 plus $5,000 at signing. A Master Development Agreement requires $14,000–$46,000 at signing, depending on the two- to 10-salon commitment.
Training and planning
Pay $1,500–$2,500 per participant for travel and living expenses as incurred, plus $100–$3,800 of Architecture Fees as plans and required revisions are completed.
Lease and account commitments
Pay $1,000–$10,000 for rent and security deposits when the lease is signed or utility accounts begin. If Great Clips assigns or guarantees the lease while retaining liability, the Lease Liability Fee and Lease Review Fee can total up to $4,000.
Construction and equipment order
Leasehold Improvements are paid as construction starts; fixtures, signage, furnishings and Salon Technology Hardware are paid when ordered. For a subsequent Franchise Agreement, the second $10,000 Initial Franchise Fee installment and $5,000 MDAF contribution are due with the equipment order.
Opening and early operations
Opening Inventory and Supplies, freight, sales tax, Insurance and Grand Opening Advertising are paid before or around opening. Additional Funds support pre-opening costs and the first 3–6 months as payroll, rent, recruiting, repairs, professional fees and other start-up obligations arise.
Source: 2026 Great Clips, Inc. FDD, Items 5 and 7, pp. 9–18. The FTC’s consumer guide to buying a franchise explains the federal disclosure timing that precedes signing or payment.
How do the single-salon, Three Star and Master Development payments differ?
The three entry payments purchase different contractual rights and should not be treated as interchangeable franchise-fee quotes. A single Franchise Agreement covers one salon; the Three Star Program Agreement is a 24-month lease-signing incentive tied to three Franchise Agreements; the Master Development Agreement grants a multi-salon development commitment in an Exclusive DMA.
Source: 2026 Great Clips, Inc. FDD, Item 5, pp. 9–12, and Item 7, pp. 15–19. Percent widths are derived only to plot the disclosed dollar amounts on a common $46,000 scale.
The $14,000–$46,000 Master Development Agreement amount is not the cost to open all committed salons. It is the Development Fee of $4,000 per committed salon plus the first $6,000 Initial Franchise Fee. The first salon still carries its own Item 7 investment, and each later salon requires a separate $6,000 Initial Franchise Fee when its Franchise Agreement is signed.
Which fees continue after the salon opens?
The main continuing payments are a 6% Continuing Franchise Fee and a 5% Continuing Advertising Contribution to the Ad Fund, both calculated on Gross Sales and collected biweekly. Gross Sales includes revenue from services, products and goods sold from or in connection with the salon, less sales taxes.
| Continuing obligation | Amount or basis | Timing | Interpretation |
|---|---|---|---|
| Continuing Franchise Fee | 6% of Gross Sales | Biweekly | Automatic bank withdrawal; government taxes imposed on the fee can be passed through |
| Continuing Advertising Contribution to the Ad Fund | 5% of Gross Sales | Biweekly | Separate from local advertising and Co-op dues |
| Incremental Local Advertising | Likely minimum 1%–3% of Gross Sales | As local activity requires | Additional operating expense, not part of the 5% Ad Fund contribution |
| Training Fee | Currently $200 per year per salon | April 1 annually | May change, capped at the greater of $200 or 1% of annual Gross Sales |
| Local Co-op Dues | System average $100 per month | As determined by the Co-op | Actual dues and assessments vary by local cooperative |
| Recruiting Technology Fee | Currently $750 per year per salon | $375 semi-annually | May change, capped at the greater of $750 or 1% of annual Gross Sales |
| Styleware Software Suite License | Currently $250 per month per salon | Monthly automatic withdrawal | After-hours telephone support is $25 per call |
| Salon Ongoing Maintenance Costs | $3,000–$9,000 annually | As incurred | Painting, carpeting, graphics, fixture repair and periodic upkeep |
Source: 2026 Great Clips, Inc. FDD, Item 6, pp. 12–15, and Item 11, pp. 32–34. The official franchise FAQ separately confirms the $20,000 franchise fee and 6% royalty.
Required payment processing adds a one-time $15 setup fee per salon, $0.016 per electronic transaction and $5 per month for the Merchant Protection Program. Warranty and support charges for the required payment terminal can also apply, but the 2026 FDD does not state a fixed amount. Hardware, network, managed-services, license and warranty costs may change when Great Clips changes required technology.
Which costs arise only after a trigger, transfer or remodel?
Item 6 includes charges that are not ordinary opening costs but can become material over a 10-year Franchise Agreement term. The largest disclosed later-life range is $20,000 to $80,000 for Salon Upgrades every seven to 10 years.
Source: 2026 Great Clips, Inc. FDD, Item 6, pp. 12–15, and Item 17, pp. 46–50.
Are liquid capital and net worth part of the opening-cost range?
No. Great Clips’ financial qualifications are screening thresholds, not additional Item 7 line items and not proof that the disclosed investment can be funded entirely with those amounts. As checked July 15, 2026, the official franchise site states minimum net worth of $500,000 and liquid assets of $100,000, with higher thresholds of $1,000,000 net worth and $250,000 liquid assets in high-cost markets. It also lists a minimum credit score of 675.
The official financial thresholds can vary by market. Great Clips also requires a new franchisee to live in an open geographic market, so the relevant capital screen should be confirmed against the current financial requirements and available U.S. territories for the intended market.
Does Great Clips finance the franchise cost?
Great Clips does not generally provide direct or indirect financing for the salon purchase or Item 7 fees. Item 10 says Great Clips, its agents and affiliates do not offer financing arrangements, although the company may guarantee a loan in limited circumstances, may charge a fee for that guarantee and may guarantee a lease subject to the disclosed Lease Liability Fee and Lease Review Fee.
The official website says Great Clips has relationships with third-party lenders and can connect prospects with outside funding options. That statement does not change the FDD position: a third-party relationship is not franchisor financing and does not guarantee approval, rate, leverage or closing. Item 10 also says Great Clips is listed on the Franchise Registry, which can streamline lender access to franchisor information, but is not an SBA endorsement or loan guarantee.
Financing cost is not built into the Item 7 range. Item 7 permits third-party financing of Leasehold Improvements, fixtures, signage and furnishings at the franchisee’s discretion, but interest, lender fees, collateral requirements and any required guarantee are additional and borrower-specific.
What does the official range leave unresolved?
The 2026 disclosure gives a usable national range, but it cannot resolve the actual lease, local build-out, staffing, financing and format conditions for a specific site. A buyer should reconcile the current contracts and local bids to the official categories without replacing the FDD total with an unsupported “typical” budget.
The cost decision in one sentence: plan around the official $187,800–$419,900 first-salon range, treat the $70,000–$200,000 Leasehold Improvements line as the primary site-sensitive variable, keep the $20,000–$60,000 Additional Funds inside that total, and separately test whether the selected development agreement, financial qualifications, continuing fees and later remodel obligations fit the available capital.